Netflix Raises Bridge Financing for Warner Bros. Deal to $42 Billion

Netflix Inc. has secured additional borrowing from a group of major Wall Street lenders as it moves forward with an updated, all-cash deal to acquire Warner Bros. Discovery Inc.’s studio and streaming operations.

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According to a regulatory filing released Tuesday, the streaming giant now has $42.2 billion in bridge financing lined up. Bridge loans are typically short-term funding arrangements that companies later replace with longer-term instruments such as corporate bonds. The expanded borrowing underscores the scale of Netflix’s ambitions as it restructures the financial backbone of one of the largest media deals in recent years.

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Under the revised agreement, Netflix has agreed to fund the entire transaction in cash. This marks a shift from its earlier proposal, which involved a mix of cash and stock valued at $27.75 per share for the Warner assets.

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The change in structure comes as competition heats up, with Paramount Skydance Corp. entering the fray through an all-cash tender offer of $30 per share for all of Warner Bros.

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Netflix originally arranged roughly $59 billion in financing from a consortium of banks to support the acquisition, a package that included one of the biggest bridge loan facilities ever assembled.

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Over time, the company refinanced a portion of that borrowing with longer-dated debt, reducing the amount that still needed to be syndicated. Prior to the latest update, about $34 billion remained outstanding before this week’s increase in bridge financing.

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The amended agreement prompted several lenders to step up with additional commitments. Wells Fargo & Co. is providing $4.1 billion in new bridge loans, making it the largest incremental contributor. BNP Paribas SA followed with $2.87 billion, while HSBC Holdings Plc added $1.23 billion, according to the filing. These additions pushed the total bridge loan figure higher as Netflix positions itself to fully fund the transaction in cash.

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For investors, the move highlights Netflix’s confidence in its balance sheet and long-term cash flow generation. While bridge loans can raise questions about leverage in the short term, they are commonly used in large acquisitions and are often viewed as a temporary step toward more permanent financing. Netflix’s ability to refinance earlier portions of the deal with longer-term debt suggests it retains strong access to capital markets.

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The competitive bidding environment also adds another layer of complexity. Paramount Skydance’s all-cash offer raises the stakes and may influence how investors assess valuation, deal certainty, and potential regulatory considerations. Netflix’s decision to remove stock from the equation could be seen as a strategic move to make its bid cleaner and more attractive, particularly in a crowded and high-profile contest.

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From a broader market perspective, the deal reflects ongoing consolidation across the media and streaming landscape, as companies look to scale content libraries, strengthen streaming platforms, and improve their competitive positioning. For Netflix, acquiring Warner Bros.’ studio and streaming assets would represent a transformative step, potentially expanding its content reach and reinforcing its dominance in global streaming.

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As the financing continues to evolve, investors will be watching closely to see how Netflix ultimately replaces the bridge loans with longer-term debt and how the final structure impacts its leverage, credit profile, and future growth strategy.

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